A comprehensive homeowners insurance policy is one of the single best ways to protect your property, your family, and your finances. These policies are not only a legal requirement in many areas, but they will also be a family’s first line of defense against many of the common accidents that can take place within a home.
Basic Property and Liability Coverage
The average home insurance policy begins with coverage for the structure of the home, some of the possessions within the home, and any injuries that take place on the property. This form of liability coverage will be vital in the event that a family member, friend, neighbor, or any other guest on your property suffers a serious injury. It is important to remember that homeowners do not need to insure their property for the full amount that they purchased it for. Families only need to have coverage for the structure of the home, not the land that it is on.
How Are my Premiums Determined?
Most homeowners will need to work closely alongside an experienced insurance broker to get an idea about what their premiums will be. The biggest factor in this equation is the total amount of coverage that is required. You will also need to decide how large of a deductible you are willing to pay. Those that have a larger deductible will often have much lower premiums. The location of your home and the safety features on your property will also be taken into consideration. Options such as alarms and security gates could lower your premiums.
Every homeowner should know exactly what is covered in their policy. In many instances, natural disasters are only partially covered or not covered at all. This is why you should take some time to research if your town is prone to natural disasters such as earthquakes, hurricanes, and floods. Coverage for these events will require additional insurance riders. You might also want to consider a thorough home inspection to check for any other potential risks that are not covered such as mold, old sewer lines, and termite infestations.